Mediating effect of Enterprise Risk Management Practices on Risk Culture and Organization Performance

Submitted on 10th June 2015

Major organizations around the world agree that managing risk is crucial to survive in this globalized and competitive world. Enterprise Risk Management (ERM) has emerged as a new popular concept of managing organizational risk holistically. Past researches found that adopting and practicing ERM makes an organization more prepared in addressing possible threats. Furthermore, there is also general argument by scholars and researchers that organizations adopting ERM will improve their business performances. Hence, ERM has received a positive response from business leaders and organizations around the world. However, evidence from various studies shows that there are lacking in the practice of ERM among Malaysia organizations. Why is this so? There are various factors that influence ERM adoption and implementation. But several studies indicate that risk culture is one of the important attributes of risk management aspect that board members should comprehend. This is because the implementation of ERM will be unsuccessful without a risk culture awareness being embedded at all level of the organization. As such, this paper aims to propose a conceptual framework to investigate the mediating effect of ERM on organizational culture and firms’ business performance among public listed companies in Malaysia. This study will broaden the scope of literature in this area by providing evidence on Malaysian environment and enhancing the frontier of knowledge in this area.

Source
Miscellaneous
Length of Resource
6 pages
Author
Azreen Roslan & Hayati Mohd Dahan
Date Published
Publication Type
paper
Resource Type
academic